1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vesna_86 [32]
2 years ago
9

The current price of the futures contract is $30. A six-month call option on the futures contract with a strike price of $30 is

trading at a price of $4. What is the price of a six-month put option on this futures contract with the same strike price?
Business
1 answer:
babymother [125]2 years ago
7 0

Answer:

Put Price = $4

Explanation:

We are applying Put Call Parity Theorem. Future Price + Put Price = Call Price + Strike Price

$30 + Put Price = $4 + $30

Put Price = $4 + $30 - $30

Put Price = $4

Thus, the price of six month put option = $4

You might be interested in
This case explores some issues related to entering a new foreign market and describes the strategies that one UK firm is using t
gizmo_the_mogwai [7]

Answer:  Megabus being a late mover in the US, has allowed the company to learn from past mistakes by companies such as Greyhound, who filed for bankruptcy in the mid 90's and who lost most of it's business due to poorly maintained terminals, high prices for fares and unsafe conditions. Mega bus's advantages include fares as lows as 1 dollar, free wi-fi, stylish buses and power outlets. They Can offer these low fares since the company eliminated purchase Windows for tickets, selling tickets online only and by eliminating expensive terminal operations by dropping off and picking up riders at sidewalk stops like public bus operators. There are few disadvantages besides the fact that rising gas prices affect travel and low fare prices affect revenue if quantity is not met   .

Advantages - 1. Affordable  2. Pretty scenery 3.You get what you paid for

Disadvantages-1. Uncomfortable 2. It’s Either Freezing or Sweltering  3. Odd People

2. Yes it has own Overwhelming resources and capabilities  3. Train

Explanation:

4 0
2 years ago
Which one of the following statements about private goods is true? (WITH EXPLANATION PLEASE)
sergey [27]
C because some people can not afford to buy private goods which leads them to be excluding them from the products a firm makes
6 0
2 years ago
Inez hires josh to paint her portrait to her satisfaction for $4,000. when josh finishes the portrait, inez announces that she i
mamaluj [8]

If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.

7 0
2 years ago
Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea
Korolek [52]

Answer: $94,000

Explanation:

7 0
3 years ago
Which building is widely regarded as the first skyscraper? empire state building chrysler building woolworth building home insur
s344n2d4d5 [400]
Further expansions led to the world's first skyscraper, the ten-story Home Insurance Building in Chicago, constructed in 1884–1885. It is the so-called “Father of the Skyscraper”. While its tallness of 138 feet is not measured very remarkable today, it was at that time. The designer of the building was Major William Le Baron Jenney. 
5 0
3 years ago
Other questions:
  • Having low credit score can make it more difficult to
    6·2 answers
  • When there is an expansionary gap, inflation will ______, in response to which the Federal Reserve will ____ real interest rates
    6·1 answer
  • A(n) ________ market is a market in which goods or services are bought and sold illegally
    5·1 answer
  • Case ScenarioOver the past four years, the LSS organization, a nonprofit organization headquartered in Minneapolis, MN, has beco
    12·1 answer
  • "Logistics" has essentially the same meaning as which of the following terms?
    5·2 answers
  • Vincente is conducting research to test the hypothesis that the social contagion effect is weak in adults. His finding that adul
    15·1 answer
  • Which of these interaction is most consistent with the idea of networking? Select one:
    5·1 answer
  • Nadine’s Home Fashions has $2.12 million in net working capital. The firm has fixed assets with a book value of $31.64 million a
    8·1 answer
  • Lindsay is in 11th grade and wants to be a physical trainer and work with athletes for her career. She wants to help them learn
    13·1 answer
  • Disadvantages of gap maps with example
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!